Fortune Brands reports dip in second-quarter results

The company's net sales reached $2.35 billion (1.157bn), up 4% over the previous year, while operating income was $428m (210.7m), down 1% over the previous year.

The company that owns Jim Beam, Sauza, Maker's Mark, Teacher's and the Clos du Bois winery in Sonoma said consumer demand for premium products has resulted in a mid-single-digit rate rise in spirits and wine case volumes.

Strong international sales growth, newly introduced products and the timing of brand spending for spirits and wine helped the company achieve results above the high end of its EPS target range for the quarter.

Strong profit growth in the company's spirits, wine, and golf businesses largely offset the impact of the downturn in the US housing market on the company's home products business, the company said in a statement.

Norm Wesley, chairman and CEO of Fortune Brands, said: "Looking ahead to the balance of the year, we continue to expect that our second-half results will be better than the first half.

"Reflecting the advantages of our breadth and balance, we'll continue to benefit from the global growth of our premium and super-premium spirits brands.

"For the third quarter, we're targeting diluted EPS before charges and gains to be in the range of mid-single digits to down mid-single digits and takes into account our planned acceleration of brand spending in spirits and wine."